Edward Don Acquires Myers Restaurant Supply
Edward Don & Company (DON) is a distributor of foodservice equipment and supplies. The company stocks more than 12,000 SKU’s from 3,000 suppliers and its products include dinnerware, glassware, flatware, linens, buffet and table service, apparel, bar and kitchen supplies, furniture, fuel, cleaning products, paper towels, and tissues.
In addition to its distribution business, DON also as a Foodservice Equipment Division which provides kitchen design, equipment purchasing, and installation.
According to the 2019 Distribution Giants report published by Foodservice Equipment & Supplies magazine, DON had sales in 2018 of $1,027 million. DON has been owned and operated by the Don family since 1921.
DON, with approximately 1,250 employees, has seven distribution centers – in Chicago, Philadelphia, Atlanta, Miami, Dallas, Los Angeles, and Seattle – and is headquartered in Woodridge, IL (www.don.com).
Myers Restaurant Supply (Myers) is a distributor of foodservice equipment and supplies and is also a provider of restaurant and commercial kitchen design and build services. Customers include independent restaurants and multi-unit franchises, schools, hospitals, and country clubs. The company was founded in 1951 by Bob Myers and is today led by CEO Charlie Fusari and President Rob Myers (son of the founder). Myers is headquartered in Santa Rosa, CA (www.myersrestaurantsupply.com).
Myers will operate as a division of DON and remain under the leadership of Charlie Fusari and Rob Myers. “We look forward to bringing the Myers team on board,” said Steve Don, CEO of Edward Don & Company. “Their design-build and contract expertise complement our existing equipment and supplies business well, both in the California market and nationwide.”
The buy of Myers is DON’s third add-on acquisition under Vestar’s ownership. The two earlier buys were Smith & Greene, a Kent, WA-based foodservice equipment and supplies distributor, in December 2017, and Atlanta Fixture and Sales Company, an Atlanta-based foodservice equipment and supplies distributor, in October 2017.
Vestar specializes in management buyouts and growth capital investments. The firm targets equity investments from $50 million to $150 million in middle-market companies with enterprise values ranging from $250 million to $1 billion. Sectors of interest include consumer; diversified industries; healthcare; and financial services. Since the firm’s founding in 1988, Vestar has completed more than 80 investments in companies with a total value of more than $50 billion. Vestar has offices in New York, Boston, and Denver (www.vestarcapital.com).
Roland Foods Acquires Albert Uster Imports
NEW YORK, Jan. 10, 2019 /PRNewswire/ -- Roland Foods, LLC ("Roland Foods"), a portfolio company of Vestar Capital Partners, has closed the acquisition of Albert Uster Imports, Inc. ("AUI"). Terms of the transaction were not disclosed.
Based in Gaithersburg, Maryland, AUI has been a leading importer of specialty pastry, bakery, and confectionary products to professional chefs and bakers for 50 years. AUI sources products from more than 150 global suppliers, including exclusive distribution arrangements with best-in-class brands such as Felchlin, HUG, Ponthier, Laderach, and PCB Creation, among others.
Roland Foods, founded in 1934, is a leading importer of specialty food products, providing more than 1,500 globally sourced SKUs to North American and international foodservice, retail, and industrial customers. Roland Foods has been a portfolio company of Vestar since 2013.
"The acquisition of AUI establishes Roland Foods as a leading platform within the specialty foods landscape," said James Wagner, CEO of Roland Foods. "This acquisition doubles Roland Foods' portfolio of unique, hard-to-source specialty products, increases our presence in the growing pastry and confections product lines, and offers us entry into the frozen and refrigerated categories."
"AUI and Roland Foods have much in common as global leaders in the imported specialty foods niche," said Philipp Braun, CEO of AUI. "However, there is little product overlap and each company brings complementary products and services to the combination. The resources and expertise that AUI can now tap through Roland Foods will accelerate our ambitious plans for both product and customer expansion."
Kirkland & Ellis served as legal counsel and SunTrust Robinson Humphrey as financial advisor to Roland Foods and Vestar. Legal counsel for AUI was provided by Arnold & Porter.
About Roland Foods
Roland Foods, based in New York City, specializes in importing high-quality specialty food products from more than 50 countries. Founded in Paris in 1934 and established in the U.S. in 1939, the Company provides customers with exceptional specialty foods, primarily offered under the Roland brand. The company has a national presence in the foodservice, retail, and industrial channels as well as international sales in the Caribbean, Central and South America, Asia, Africa, and the Middle East. Roland Foods' dedication to providing quality and consistency has made it a leader among food importers and suppliers. The Roland brand is synonymous with quality for the consumer and chef alike. For more information, please visit www.rolandfoods.com.
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Healthcare, and Business Services. Since its founding in 1988, Vestar funds have completed more than 80 investments in companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information on Vestar, please visit www.vestarcapital.com.
Media Contacts:
Blicksilver Public Relations, Inc.
Jennifer Hurson
845-507-0571
[email protected]
Carol Makovich
203-622-4781
[email protected]
Healthgrades Acquires Influence Health to Expand Footprint
DENVER, Jan. 8, 2019/Denver Business Journal/ -- Healthgrades, the online portal that lets consumers read reviews on hospitals, doctors and other health care providers, has acquired a Birmingham company that’s going to allow it to expand its customer relationship management business and add new offerings to its suite of products.
Rob Draughon, CEO of the Denver-based company, announced at the 37th annual J.P. Morgan Healthcare Conference on Tuesday, that Healthgrades acquired Birmingham, Alabama-based Influence Health, a company that offers web development, social media and search optimization products for health care customers.
Terms of the deal were undisclosed, but Draughon told Denver Business Journal it would give the combined company about 1,500 customers. Both companies had about 1,000 customers ahead of the acquisition.
The company doesn’t share revenue numbers, but Draughon expects the deal to increase business by 20 percent in 2019.
That’s going to be done by boosting its CRM business. The software product accounts for about 25 percent of the company’s revenue. Influence also offered a CRM solution to its customers.
Draughon said part of the appeal to purchase Influence was its ability to drive social media and search campaigns, along with its website-building services.
“It’s going to expand our footprint and add some new offerings,” he said. “It’s much easier to up-sell to the existing base then try to venture out into a new customer base.”
One of those new products for Healthgrades to up-sell will be Influence’s directory listing management software. The technology checks health system information, like phone numbers, personnel and addresses, across the internet to make sure everything is up to date.
Healthgrades makes a majority of its revenue — about 75 percent — from its physician directory, which gives consumers relevant information about hospitals and doctors in their area. Health systems sponsor about 75 percent of that revenue; pharmaceutical customers make up about 25 percent, Draughon said.
The acquisition adds about 80 employees, bringing Healthgrade’s total workforce to more than 800. The combined company's headquarters will be in Denver. A company spokeswoman said there were some redundancies as part of the deal, but declined to disclose specific numbers. Influence Health employed about 200 people and had plans to grow.
Last year, Influence did a major expansion in Atlanta, where it had plans to double its workforce and relocate to Armour Yards, a 300,000-square-foot loft-office project. The company had plans to add as many as 35 jobs in Atlanta through 2019.
In 2015, Influence entered the Atlanta market after it purchased BrightWhistle, a company that developed software to aid health insurers, physicians and hospitals land new patients, for $20 million.
Healthgrades will keep existing offices in Birmingham and Atlanta, in addition to its Raleigh office, Draughton said. Both companies also have smaller offices in Madison, Wisconsin, which will be consolidated into one building.
Draughon said he isn’t done buying more companies.
“This is the second deal we’ve done in the last three years,” he said. “We’ve been looking at companies, but prices were not attractive. Now, there are some in our space that we hope to [acquire].”
Civitas Solutions Enters into Definitive Merger Agreement to Be Acquired for $17.75 per Share
BOSTON--(BUSINESS WIRE)-- Civitas Solutions, Inc. (“Civitas” or the “Company”) (NYSE: CIVI) today announced that it has entered into a definitive merger agreement to be acquired by funds advised by Centerbridge Partners, L.P. (“Centerbridge”). Under the terms of the agreement, Centerbridge will acquire all outstanding shares of Civitas common stock for $17.75 in cash per share of Civitas common stock, resulting in an enterprise value of approximately $1.4 billion. The offer price represents a 27% premium to the 30-day volume-weighted average price as of December 18, 2018.
“We are excited about this transaction, which follows a thorough review of alternatives by our Board of Directors,” said Bruce Nardella, President and Chief Executive Officer of Civitas. “This transaction delivers significant value for our shareholders and strengthens our ability to execute our long-term growth strategy and fulfill our mission through the expansion of high-quality, cost-effective services.
“I want to thank each member of our Board for their strategic advice and support, as each director has played an important role in helping us expand our leadership position in the field of community-based health and human services,” Nardella stated. “In particular, I want to recognize Vestar for their strong and productive partnership during the last 12 years. I have great respect for Centerbridge and look forward to working with them and the entire Civitas team as we work to continue to innovate, grow and positively impact the lives of tens of thousands of individuals in need of support.”
“We are excited to partner with Civitas to continue to support the Company's leading position in serving the critical needs of individuals with intellectual and developmental disabilities, acquired neurological conditions, and other complex needs across a range of home- and community-based settings,” said Jeremy Gelber, Senior Managing Director at Centerbridge. “Civitas has a strong history of compassionate care and putting the person first, and we intend to invest further in these competencies as we partner with our caregivers, parent and community advocates, and payors to ensure the highest quality lives for each individual.”
“Civitas’ model of individualized, community-based care and support is more important than ever, and our firm is proud of the advances that the Company has made working with the Vestar team,” said Chris Durbin, Managing Director at Vestar Capital Partners. “Under our ownership, the Company has doubled its revenue, diversified its service offerings and, most importantly, now supports thousands more individuals on a daily basis.”
The merger agreement was unanimously approved by Civitas’ Board of Directors, which has recommended that the shareholders vote in favor of the transaction. Completion of the transaction is subject to shareholder approval, expiration or termination of waiting periods under Hart-Scott-Rodino Antitrust Improvements Act, and other customary closing conditions. The acquisition is expected to be completed by the end of the Company’s second fiscal quarter.
Barclays is acting as financial advisor to Civitas and Kirkland & Ellis LLP is serving as its legal advisor. Cain Brothers, a division of KeyBanc Capital Markets, UBS Securities LLC, and Goldman Sachs & Co. LLC are acting as financial advisors to Centerbridge and Goodwin Procter LLP and Simpson Thacher & Bartlett LLP are serving as its legal advisors. Goldman Sachs & Co. LLC, UBS Securities LLC, RBC Capital Markets, LLC and KeyBanc Capital Markets have provided committed financing for the transaction.
About Civitas
Civitas Solutions, Inc. is the leading national provider of home- and community-based health and human services to must-serve individuals with intellectual, developmental, physical or behavioral disabilities and other special needs. Since our founding in 1980, we have evolved from a single residential program to a diversified national network offering an array of quality services in 36 states.
About Centerbridge Partners, L.P.
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines – from private equity to credit and related strategies, and real estate – in an effort to find the most attractive opportunities for our investors and business partners. The firm was founded in 2005 and as of September 2018 had approximately $27 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies to help companies achieve their operating and financial objectives. For more information, please visit www.centerbridge.com.
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Healthcare, and Business Services. Since 1988, Vestar funds have completed more than 80 investments in companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information on Vestar, please visit www.vestarcapital.com.
Additional Information About the Acquisition and Where to Find It
This communication is being made in respect of the proposed transaction involving Civitas and an affiliate of Centerbridge. A stockholder meeting will be announced soon to obtain shareholder approval in connection with the proposed merger. Civitas expects to file with the Securities and Exchange Commission (the “SEC”) a proxy statement and other relevant documents in connection with the proposed merger. The definitive proxy statement will be sent or given to the shareholders of Civitas and will contain important information about the proposed transaction and related matters. INVESTORS OF CIVITAS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER RELEVANT MATERIALS CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT CIVITAS, CENTERBRIDGE AND THE PROPOSED MERGER. Investors may obtain a free copy of these materials (when they are available) and other documents filed by Civitas with the SEC at the SEC's website at www.sec.gov, at Civitas' website at www.civitas-solutions.com or by sending a written request to Civitas at 313 Congress Street, Boston, MA 02210; Attention: General Counsel and Corporate Secretary.
Participants in the Solicitation
Civitas and its directors, executive officers and certain other members of management and employees may be deemed to be participants in soliciting proxies from its stockholders in connection with the proposed merger. Information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of Civitas’ stockholders in connection with the proposed merger will be set forth in Civitas’ definitive proxy statement for its stockholder meeting. Additional information regarding these individuals and any direct or indirect interests they may have in the proposed merger will be set forth in the definitive proxy statement when and if it is filed with the SEC in connection with the proposed merger.
Forward-Looking Statements
Certain statements contained in this filing may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the transaction and the ability to consummate the transaction. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements.
Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and Civitas undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: (1) conditions to the closing of the transaction may not be satisfied and required regulatory approvals may not be obtained; (2) the transaction may involve unexpected costs, liabilities or delays; (3) the business of Civitas may suffer as a result of uncertainty surrounding the transaction; (4) the outcome of any legal proceedings related to the transaction; (5) Civitas may be adversely affected by other economic, business, legislative, regulatory and/or competitive factors; (6) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement;
(7) risks that the transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the transaction; (8) the failure to obtain the necessary debt financing arrangements set forth in the commitment letters received in connection with the transaction; and (9) other risks to consummation of the transaction, including the risk that the transaction will not be consummated within the expected time period or at all. If the transaction is consummated, Civitas’ stockholders will cease to have any equity interest in Civitas and will have no right to participate in its earnings and future growth. Additional factors that may affect the future results of Civitas are set forth in its filings with the SEC, including its Annual Report on Form 10-K for the year ended September 30, 2018, which are available on the SEC's website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
For Civitas Solutions, Inc.:
Dwight Robson
Chief Public Strategy and Marketing Officer
617-790-4800
[email protected]
For Centerbridge:
Jeremy Fielding / Anntal Silver
Kekst CNC
212-521-4800
For Vestar:
Blicksilver Public Relations, Inc.
Carol Makovich
203-622-4781
[email protected]
Jennifer Hurson
845-507-0571
[email protected]
Vestar Capital Partners to Lead New Investment in IRI
New York, NY – November 15, 2018 – New Mountain Capital (“New Mountain”) and Vestar Capital Partners (“Vestar”) today announced the signing of a definitive agreement through which Vestar will lead a new investment in Information Resources, Inc. (“IRI”). IRI has been a New Mountain portfolio company since 2011. Terms of the agreement, which is expected to close in the fourth quarter of 2018, were not disclosed. Post-transaction, New Mountain and Vestar will jointly govern IRI.
IRI is a fast-growing, innovative, global provider of data and predictive analytics that help fast-moving consumer goods, OTC health care, retail, financial services, and media companies accelerate growth. Jeffrey Ansell, a Vestar Senior Advisor and IRI Board member since 2011, will serve as Chairman of IRI. New Mountain and other existing investors are retaining a meaningful investment in IRI.
“The IRI management team, led by CEO Andrew Appel, has a proven track record of partnering with clients to leverage data, technology, and cutting-edge ideas to help achieve better business results,” said Mr. Ansell. “Working with Andrew and this talented management team, as well as with New Mountain and Vestar, we can continue to realize the strong client impact and value creation potential of this business.”
“Since New Mountain invested in IRI, we have transformed our business through significant investments in leading-edge technology and built a partner network of more than 100 companies,” said Andrew Appel, CEO of IRI. “We're excited about the new relationship with Vestar, which will further strengthen IRI’s ability to provide superior client service, particularly given Vestar's experience in consumer goods, data and information technology. With the additional support, IRI will have even more resources at our disposal to help clients deliver profitable revenue growth.”
“IRI’s accelerating top-line performance, long-term customer relationships, and stable margins make for a highly attractive financial profile,” said Norm Alpert, Co-President of Vestar. “IRI’s sophisticated data and predictive analytics offerings are unique and the value to clients has been proven again and again. We see meaningful upside through continued improvement and investment in innovative insights for clients as well as expansion both organically and through strategic acquisitions.”
“We are confident in the tremendous growth prospects for this business,” said Mat Lori, Managing Director at New Mountain. “With the ‘Liquid Data’ family of solutions enabling its blue-chip customer base to drive growth most effectively, connect with customers, and capture greater market share, our conviction in the long-term value creation potential for IRI remains strong.”
Kirkland & Ellis served as legal counsel to Vestar. Evercore, Morgan Stanley, and Jefferies acted as financial advisor and Fried Frank served as legal counsel to New Mountain and IRI. Jefferies Financial Group, Nomura Securities and Ares Management provided committed financing for the transaction.
About IRI
IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG companies, OTC health care organizations, retailers, financial services and media companies grow their businesses. With the largest repository of purchase, media, social, causal, and loyalty data, all integrated on an on-demand, cloud-based technology platform, IRI helps to guide its more than 5,000 clients around the world in their efforts to remain relentlessly relevant, capture market share, connect with consumers, and deliver market-leading growth. A confluence of major external events — a revolution in consumer buying, big data coming into its own, advanced analytics and automated consumer activation — is leading to a seismic shift in drivers of success in all industries. For more information on IRI, please visit www.iriworldwide.com.
About New Mountain Capital
New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, public equity, and credit funds with more than $20 billion in assets under management. New Mountain Capital seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit www.newmountaincapital.com.
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Healthcare, and Business Services & Industrial Products. Since its founding in 1988, Vestar funds have completed more than 80 investments in companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information on Vestar, please visit www.vestarcapital.com.
# # #
Media Contacts:
Vestar Capital Partners
Blicksilver Public Relations, Inc.
Carol Makovich
203-622-4781
Jennifer Hurson
845-507-0571
New Mountain Capital
Abernathy MacGregor
Dana Gorman
212-371-5999
IRI
Shelley Hughes
312-474-3675
Quest Analytics Acquires BetterDoctor
Today, healthcare costs in the U.S. are spiraling. As a result, health plans are narrowing the size of their provider networks to keep premiums affordable. Federal and state insurance regulators have subsequently enacted network adequacy and provider data accuracy regulations to ensure plan members have convenient and timely access to physicians and hospitals.
The combination of Quest Analytics' network decision-support tools and BetterDoctor, the only primary-source verified provider data management platform, will enable health plans to provide their members with convenient access to an adequate network of doctors and hospitals and an up-to-date, accurate directory of network providers.
"Narrow networks compound the issue of inaccurate provider data and pose substantial challenges to health plan members seeking the right doctor, hospital and care for themselves and their families," said Roger Holstein, Executive Chairman, Quest Analytics. "Quest Analytics offers an unprecedented solution for health plans seeking to improve their member experience."
"Recent CMS audits have found that the majority of Medicare Advantage health plan provider directories were 30 to 60 percent inaccurate," said John Weis, co-founder and President, Quest Analytics. "Today, we can solve that problem. Because the BetterDoctor provider data management platform is 100 percent primary source verified by the providers themselves, we deliver the most accurate source of data that our 300 health plan customers can depend upon to solve this problem for plan members."
"Quest Analytics recognizes that network adequacy and accuracy are inextricably linked," said Ari Tulla, co-founder of BetterDoctor and Chief Executive Officer, Quest Analytics. "Together, we will help health plans address two of the biggest issues facing health plans today: accessible networks and accurate provider directories for their members and compliance with federal and state requirements."
Charles Boorady, founding managing director, Health Catalyst Capital, will also join the Quest Analytics Board. He commented, "Health plans are under intense pressure. Quest Analytics can substantially improve the member experience, help eliminate surprise billing, and make member-facing mobile applications more user friendly. These improvements can have meaningful impact on advancing the quality of care in the U.S."
The combined company will operate under the Quest Analytics brand. As part of this transaction, Ari Tulla, co-founder of BetterDoctor, will bring his deep background in technology and platform development to become Chief Executive Officer of Quest Analytics. John Weis, co-founder of Quest Analytics, will serve as President of the company, where he will continue to lead customer and product strategy to help health plans build innovative solutions to meet their evolving needs.
Vestar Capital Partners, which acquired Quest Analytics in August 2017, and Health Catalyst Capital, which first invested in BetterDoctor in April 2017, financed the investment.
About Quest Analytics
Quest Analytics is the first comprehensive platform that enables health plans to optimize their member experience, while complying with federal and state regulations for network adequacy and accuracy. Our provider data management and network analytics services are trusted by the nation's leading health plans, insurance regulatory agencies and benefit consultants to provide consumers with convenient access to an adequate network of doctors and hospitals and an up-to-date, accurate directory of providers. For more information, please visit www.questanalytics.com.
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long- term enterprise value, with a focus on Consumer, Healthcare, and Business Services & Industrial Products. Since its founding in 1988, Vestar funds have completed more than 80 investments in companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information, please visit www.vestarcapital.com.
About Health Catalyst Capital
Health Catalyst Capital is a venture capital fund that seeks to invest in high-growth healthcare technology and technology-enabled services businesses that work to improve patient outcomes, enhance patient access, and deliver value-based care. Health Catalyst Capital invested in BetterDoctor as part of its systematic review of companies developing technologies related to Patient Navigation, Network and Referral Management. HCC remains active in this investment theme and others. For more information, visit www.HealthCatalystCapital.com.
Media contact:
Jen Newman
[email protected]
917.587.9462
Related Links
Goldman Sachs and Vestar Capital Partners Agree to Sell Hearthside Food Solutions
CHICAGO, IL, April 17, 2018 – Goldman Sachs and Vestar Capital Partners announced today that they have signed a definitive agreement to sell Hearthside Food Solutions, the leading bakery, nutrition bar and snack supplier of choice to premier food companies, to an investment group. Terms were not disclosed. The transaction is expected to close in the second quarter of 2018.
Hearthside Food Solutions is the nation’s largest and fastest-growing independent bakery and a full-service contract manufacturer of high quality, grain-based food and snack products for many of the world’s leading premier brands. Hearthside offers a diverse product portfolio, including nutrition bars, snack bars, cookies, crackers, and other grain-based snacks. The company manufactures its products across a network of 25 facilities in the United States and Europe.
Hearthside grew rapidly under the joint ownership of Goldman Sachs and Vestar. In just under four years, Hearthside completed four acquisitions, entered new categories, and expanded into Europe.
“Our relationship with Goldman Sachs and Vestar was exceptional,” said Rich Scalise, founder, chairman, and CEO of Hearthside. “They became partners that enabled growth, strategic direction and most importantly trust. We are excited about taking those enablers to the next level with our new investors as we look to new geographical markets, new categories to enter, and in continuing to make our customer first in everything we do.”
“Hearthside has been an exceptional food platform that we identified early and were successful in helping to scale into Europe and across high-growth categories,” said Nicole Agnew of Goldman Sachs. “The company has experienced tremendous growth under Rich Scalise’s leadership and we wish the company continued success.”
“Hearthside’s growth over the last four years has exceeded our expectations, thanks in large part to Rich’s leadership and his management team,” said Brian O’ Connor, Managing Director of Vestar. “Together, we targeted acquisitions that complemented Hearthside’s capabilities, expanded into Europe and entered new categories. We are confident Hearthside will continue to prosper.”
Davis Polk & Wardwell LLP acted as the legal advisor to Hearthside, Goldman Sachs and Vestar in this transaction. Barclays and Goldman Sachs served as the financial advisors for the transaction.
About Hearthside Food Solutions
Hearthside Food Solutions, headquartered in Downers Grove, Illinois, is the leading bakery, nutrition bar and snack supplier of choice to premier food companies. Hearthside currently operates 25 food-manufacturing facilities, including three in Europe. In 2014, Hearthside was acquired by the Merchant Banking Division of Goldman Sachs and Vestar Capital Partners. For more information on Hearthside Food Solutions, visit www.hearthsidefoods.com.
About Goldman Sachs
Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Merchant Banking Division is the primary center for the firm’s long-term principal investing activity. With nine offices across seven countries, Goldman Sachs MBD is one of the leading private capital investors in the world with equity and credit investments across corporate, real estate, and infrastructure strategies. Since 1986, the group has invested approximately $185 billion of levered capital across a number of geographies, industries and transaction types.
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Healthcare, and Business Services & Industrial Products. Since its founding in 1988, Vestar funds have completed more than 80 investments in companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information, please visit www.vestarcapital.com.
Contacts:
FOR HEARTHSIDE:
Carl Melville
760-671-1110
[email protected]
FOR GOLDMAN SACHS:
Leslie Shribman
(212) 902-5400
[email protected]
FOR VESTAR:
Owen Blicksilver Public Relations
Carol Makovich
(203) 622-4781
[email protected]
Jennifer Hurson
(845) 507-0571
[email protected]
Vestar Promotes Nikhil Bhat to Principal
NEW YORK, NEW YORK - January 23, 2018 - Vestar Capital Partners today announced the promotion of Nikhil Bhat to Principal.
“Today’s announcement is a recognition of Nikhil’s important contributions to our firm,” said Rob Rosner, Co-President of Vestar and a founding partner of the firm as well as Head of the Business Services & Industrial Products group. “He has delivered an exceptionally strong performance to our business services and industrial products team, participating in recent transactions such as the sale of ISS and our investment in Edward Don, among others.”
Mr. Bhat is a member of Vestar’s Business Services & Industrial Products group. He joined the firm as a Senior Associate in 2014, and was promoted to Vice President in 2016. He previously worked on the Industrials team at Advent International, where he focused on private equity investments in the building products, capital equipment, and distribution sectors. He began his career as a consultant at Bain & Company.
Mr. Bhat holds a BS degree in Economics, magna cum laude, from the Wharton School of the University of Pennsylvania. He earned his MBA from the Stanford Graduate School of Business, where he graduated with distinction as an Arjay Miller Scholar.
Approximately half of Vestar’s investments over time have been in the Business Services and Industrial Products sectors, including business services companies such as Institutional Shareholder Services, Edward Don & Company, Presence Marketing, and Duff & Phelps; industrial and commercial products companies such as Mobile Technologies, Argo-Tech, Prestone, AZ Electronic Materials, and Wabtec; and industrial services companies such as Triton and Wilton Re.
Vestar’s Norman Alpert Featured in WSJ Pro Private Equity
In Their Own Words With Vestar’s Norman Alpert
WSJ Pro Private Equity
By Laura Cooper
Published December 28, 2017
Each year, WSJ Pro Private Equity asks thought leaders in the private-equity industry to share their perspectives on the year that has just passed and their outlook for the year ahead.
Norman Alpert is co-president and a founder at New York midmarket buyout shop Vestar Capital Partners, where he leads the firm’s health-care group. Vestar typically invests $50 million to $150 million of equity in companies with valuations of $100 million to $1 billion, according to the firm’s website.
Q: What surprised you the most in 2017?
A: 2017 has been another strong year economically in the U.S. overall and for private equity specifically. I am constantly amazed at the resilience, flexibility and optimism embedded in our economy, workforce and markets. For PE, these factors created an incredibly positive environment for new investments and exits. A near-perfect combination of stable growth, low interest rates, easy credit and high valuations produced outstanding performance. What’s also surprising is that all this occurred during a volatile political, social and global environment where civil discourse, tolerance and bipartisan legislative progress seem less present than ever.
Q: What do you think will be the biggest challenge your corner of the industry will face in 2017?
A: We are entering the ninth year of a solid, low-growth cycle, poised to become the second-longest recovery since [World War II]. Extended periods of very good investment performance tend to produce complacency, overconfidence and, ultimately, excessive risk-taking. I don’t know if 2018 will be the end of this highly profitable period, but the odds are it is coming sooner rather than later. For those of us who invest in health care, the uncertainty surrounding financing and access policy makes many provider and services opportunities more challenging. On the other hand, there remain tremendous opportunities to find smaller innovative health-care companies making a real difference to health-care quality and cost.
Q: What are your thoughts on the possibility of a recession in the coming year, and how is that shaping your investment strategy?
A: No apparent economic signals suggest a downturn is imminent. Our sense is an exogenous geopolitical shock is the biggest risk. However, we are approaching each investment with a clear understanding that the current economic cycle will end, interest rates may rise and valuation multiples will decline. We devise clear strategies to manage risk, develop growth and contain costs, positioning each company to respond to the inevitable surprises that lie ahead.
Vestar Capital Partners to Acquire Nonni’s
New York, New York and Chicago, Illinois – November 14, 2017 – Vestar Capital Partners (“Vestar”) today announced that it has signed a definitive agreement to acquire Nonni’s Food Group (“Nonni’s”). Nonni’s is a leading manufacturer and marketer of artisanal cookies and other premium baked snacks. Terms of the transaction were not disclosed. The transaction is expected to close in the fourth quarter of 2017.
Based in Oakbrook, IL, Nonni’s premium products are synonymous with artisanal, authentic, and Italian-inspired. Products are marketed under the Nonni’s, THINaddictives, and La Dolce Vita brand names, and sold through a diverse distribution platform that includes major customers in club, grocery, mass market, foodservice, and online retailing.
“We’re thrilled to be partnering with Vestar as we look to build upon Nonni’s growth and success. The Vestar team’s deep consumer experience will be invaluable as we work to expand our customer relationships, enter new channels, and continue to introduce new and innovative products to the marketplace,” said Brian Hansberry, CEO of Nonni’s.
“We see numerous growth avenues for Nonni’s premium, established brands,” said Brian O’Connor, Managing Director of Vestar and Co-Head of the Consumer Group. “We are excited to be partnering with Brian Hansberry, Chris Puma, and the rest of Nonni’s management team to pursue our shared vision for the Company.”
Latham & Watkins served as legal counsel to Vestar. Houlihan Lokey acted as financial advisor to Nonni’s and Kirkland & Ellis provided transaction counsel. Antares Holdings and Northwestern Mutual Capital provided financing for the transaction.
About Nonni’s Food Group
Nonni’s Food Group is the leading producer, marketer, and distributor of branded premium specialty cookies and baked goods in North America. The company sells products under the Nonni’s, THINaddictives, and La Dolce Vita brands. Headquartered in Oakbrook Terrace, Ill., Nonni’s operates four facilities in Ferndale, N.Y.; Glendale, Ariz.; Tulsa, Okla.; and Montreal, Canada. It produces its traditional biscotti using the original family recipe including real eggs, butter, and gourmet bittersweet chocolate that gives the biscotti a light, crunchy texture that is delicately sweet. The devotion to real quality ingredients is the foundation for the continued success of the company. Nonni’s Biscotti is the number one-selling biscotti in the U.S. and the only national brand sold coast to coast. Additional information is available at www.nonnis.com.
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Healthcare, and Business Services & Industrial Products. Since its founding in 1988, Vestar funds have completed more than 80 investments in companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion. For more information, please visit www.vestarcapital.com.
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